Service Concession-1st slide

A service concession is an arrangement whereby a government or other public sector

enters into a contract with a private operator to develop, operate and maintain an
infrastructure.

Two types of service concession arrangements- 2nd slide

 As a Financial Asset
 As an Intangible Asset

As a financial asset- 3rd slide

A financial asset shall be recognized by the private operator when the operator has a
guaranteed contractual right to receive a specified amount of cash over the life of the
arrangement.
Under full PFRS, the financial asset is subsequently measured at:
a. Amortized cost
b. Fair value through profit or loss
c. Fair value through other comprehensive income

As an intangible asset- 4th slide

An intangible asset shall be recognized by the private operator when the operator has
received a right or a license to charge users for the public service and the revenue
receivable is not agreed upon in advance but is dependent on the use of the asset by
the public.